FameEX Morning Crypto News Recap | May 12, 2023

US House Financial Committee Expresses Disapproval of SEC's Custody Proposal
The chair of the US House Financial Services Committee and six subcommittee chairs have written a letter to the SEC Secretary, Vanessa Countryman, expressing their concerns about the proposed advisory clients custody rule. This adds to the growing chorus of objections from various figures in the crypto industry.

MetaMask Launches PayPal-enabled ETH Purchases for US Users
MetaMask, a popular crypto wallet and DApp provider, has announced the launch of Ether purchases using PayPal for its users in the United States. The integration aims to provide greater convenience and accessibility to MetaMask's US user base. MetaMask touts itself as the first Web3 wallet to offer this feature, further solidifying its position in the market. This move opens up new avenues for users to buy and manage Ether through the MetaMask platform.

GAO Identifies Digital Asset Exposure in Investigation of Signature Bank Collapse
The US Government Accountability Office (GAO) conducted a preliminary review of Silicon Valley Bank and Signature Bank, noting their exposure to cryptocurrency industry deposits. The GAO attributed Signature Bank's collapse in March to poor governance and risk management practices. While digital assets were not explicitly identified as the cause, the report mentioned their exposure to the crypto industry as a potential contributing factor.

BIS Publishes Extensive Paper on Offline CBDC Payments
The Bank for International Settlements (BIS) is investigating the potential of using central bank digital currencies (CBDCs) for offline payments. Recently, the BIS Innovation Hub Nordic Centre published a detailed handbook that explores the functionality and possibilities of offline CBDC payments. The publication aims to provide valuable insights into the use of CBDCs in offline transactions.

Updated EU Draft AI Act Includes Ban on Public Facial Recognition
EU lawmakers have progressed AI legislation after receiving committee approval. Members of the European Parliament voted to ban facial recognition in public areas and predictive policing tools in the upcoming AI Act. This decision addresses privacy concerns and represents a significant move towards responsible AI use in the EU.

Marathon Digital, Bitcoin Miner, Receives Subpoena from SEC Once Again
Bitcoin mining company Marathon Digital has revealed in its quarterly report that it received a subpoena from the Securities and Exchange Commission (SEC) on April 10. The subpoena pertains to transactions with related parties during the establishment of a facility in Montana. Marathon acknowledges the SEC's investigation into potential violations of federal securities law and states its cooperation with the regulatory agency.

Bitcoin Network Relieves Congestion, Onchain Fees Plummet by 90%
On May 7, 2023, the Bitcoin network experienced a severe bottleneck with 500,000 unconfirmed transactions. Fortunately, congestion has been alleviated, leading to a substantial drop in onchain fees to below $5. Currently, there are around 300,000 unconfirmed transactions remaining, with 185 blocks needed to clear the backlog.

SEC Chair Highlights Potential "Significant" and "Lasting Effects" on Investors and Markets in Case of US Default
SEC Chairman Gary Gensler has issued a warning regarding the potential consequences of a U.S. Treasury default on debt obligations. He emphasized the significant and lasting effects such a default would have on investors, issuers, and markets. Gensler highlighted the impact already observed in the pricing and liquidity of short-dated Treasury bills and emphasized ongoing monitoring for further disruptions.

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